Pavin acquires all of Stabler$$s outstanding shares on January $1,2018,$ for $$700,000$ in cash. Of this amount, $$54,000$ was attributed to equipment with a $10-$year remaining life and $$64,000$ was assigned to trademarks expensed over a $20-$year period. Pavin applies the partial equity method so that income is accrued each period based solely on the earnings reported by the subsidiary.

On January $1,2021,$ Pavin reports $$540,000$ in bonds outstanding with a carrying amount of $$502,400.$ Stabler purchases half of these bonds on the open market for $$260,600.$

During $2021,$ Pavin begins to sell merchandise to Stabler. During that year, inventory costing $$156,000$ was transferred at a price of $$200,000.$ All but $$34,000($at sales price$)$ of these goods were resold to outside parties by year$-$end. Stabler still owes $$57,000$ for inventory shipped from Pavin during December.

The following financial figures are for the two companies for the year ending December $31,2021.$ Dividends were both declared and paid during the current year.

Pavin Stabler

Revenues $ $(812,000)$ $ $(553,000)$

Cost of goods sold $479,000264,000$

Expenses $149,000182,500$

Interest expense$$bonds $60,0000$

Interest income$$bond investment $0(26,600)$

Loss on extinguishment of bonds $00$

Equity in Stabler$$s income $(133,100)0$

Net income $ $(257,100)$ $ $(133,100)$

Retained earnings, $1/1/21$ $ $(369,000)$ $ $(409,000)$

Net income $($above$)(257,100)(133,100)$

Dividends declared $179,000101,000$

Retained earnings, $12/31/21$ $ $(447,100)$ $ $(441,100)$

Cash and receivables $ $241,000$ $ $59,000$

Inventory $199,000111,000$

Investment in Stabler $703,1000$

Investment in Pavin bonds $0264,000$

Land, buildings, and equipment $($net$)269,000565,000$

Trademarks $00$

Total assets $ $1,412,100$ $ $999,000$

Accounts payable $ $(116,000)$ $ $(289,900)$

Bonds payable $(540,000)(124,000)$

Discount on bonds $24,0000$

Common stock $(333,000)(144,000)$

Retained earnings $($above$)(447,100)(441,100)$

Total liabilities and stockholders$$ equity $ $(1,412,100)$ $ $(999,000)$

Note: Credits are indicated by parentheses.

Prepare a worksheet to produce consolidated balances.